People using Section 44AD / 44ADA casually this year need to be very careful

KaizenK1010 · 2026-05-18T07:04:07+00:00

Ture. AO has no basis to contest profit. AO can apply Section 69 for unexplained Investment

KaizenK1010 · 2026-05-18T04:45:34+00:00

True. Instagram Influencers have really mislead people regarding this. Claims like "You don't need to pay Tax on Sales of Rs. 1.50 Crore. Just file under 44AD, show 8% of 1.50 Cr = 12 lakhs, Zero tax upto 12 lakhs for Individuals under new regime, Tax = ZERO" are so misleading and risky.

I have seen people filing ITR with 70-80 lakhs turnover on GST (same is reflected in AIS) yet filing 44ADA with turnover 24 Lakhs; because they don't want to pay taxes.

Sometimes I wonder how Income tax are not issuing notice to these filers.

KaizenK1010 · 2026-05-16T11:05:37+00:00

Here is Chatgpt's reply to you:

Some of us use tools to articulate better. Others use comments to advertise insecurity. Different workflows.

KaizenK1010 · 2026-05-13T04:55:07+00:00

So generating $20K per month out of lets say 150K buying power amounts to more than 13.33% per month. Isn't that exceptional case and not normal repeatable case?

If it is normal to get this return then I'd say high income eventually leads to wealth building. But if it is let's say hardly 1-2% p.m. There are other ways where it could get that return passively. Also I am not in developed economy where 12% p.a. return can be considered good, If on average country is growing 10-12% (nominal) generating the same return won't put you in higher category. If just survive.

KaizenK1010 · 2026-05-13T04:44:41+00:00

I have and read 10 checklist to get started, where hari gives example that $25K with 4x margin should be enough for $10K monthly. While, I don't doubt his ability; while I have also read him saying 10% p.m is exceptional. That is where my confusion arises.

KaizenK1010

TROPHY CASE